# What Percent Should You Set the Indices Trading Stop Loss Indices Trading Order at?

## Strategies of Setting Stop Loss Indices Trading Orders In Indices Trading

Traders using a indices trading strategy must have mathematical calculations that calculate where the Stop Loss Indices Trading Order should be placed.

A Indices trader can also place a stop loss indices trading order according to the technical indicators used to set these stop loss stock indices orders.

Certain technical indicators use mathematical equations to calculate where the stop loss stock indices orders should be set so as to provide an optimal exit point.

These stock indices indicators can be used as the basis for setting these stop loss stock indices orders.

Traders also place these stop loss stock indices orders according to a predetermined risk to reward ratio. This method of setting stop loss indices trading orders is dependent upon certain mathematical equations. For example a ratio of 20 pips stop loss can be used by a Indices trader if the trade has the potential to make 40 pips in profit; this is a risk reward ratio of 2:1

Other traders just use a predetermined percentage of their total indices trading account balance.

To set a stop loss indices trading order it is best to use one of the following percentage based methods:

## Setting Stop Loss Indices Trading Order based on Percentage of Trading Account Balance

This stop loss setting method is based on the percent of indices trading account balance that the indices trader is willing to risk.

If a indices trader is willing to risk 2% of account balance then the indices trader determines how far he will set the order level based on the open trade position size that he has bought or sold.

Example:

If a indices trader has a \$10,000 account and is willing to risk 2%

• If a indices trader buys 0.1 contract or 0.1 Standard Lots
1 pip = \$1

Then setting at 2% - 2% Stop Loss Indices Trading Order Setting Percent

2% is \$ 200

200 /1 = 200 pips

Stop loss = 200 pips

• If a indices trader buys 0.5 contracts or 0.5 Standard Lots
1 pip = \$5

Then setting at 2% - 2% Stop Loss Indices Trading Order Setting Percent

2% is \$ 200

200 /5 = 40 pips

Stop loss = 40 pips

• If a indices trader buys 1 contract or 1 Standard Lot
1 pip = \$10

Then setting stop loss at 2% - 2% Stop Loss Indices Trading Order Setting Percent

2% is \$ 200

200 /10 = 20 pips

Stop loss = 20 pips

How to Set Stop Loss Indices Trading Orders based on the Indices Trading Account Balance Percent Method - What is a good Stop Loss Indices Trading Order Setting Percentage